Don't ever open a business

[Breezy]

in Norfolk VA lol
Ihave to go way back when and write down EVERYTHING that I use in the business, all the way to the telephone, teddy bears, buckets etc...
And then I have to pay a tax on the tangible business property.

That is going to suck big time!

[jeffkohn]

Isn't that the case in most states including TX?

[Breezy]

Jeff I only had to pay taxes to the State of TX.
I have never had to sit down and list every little item out and pay for every item.
This is specifically to the City of Norfolk. Has nothing to do with my state taxes at all.

[Debbi]

To be legal in Texas, you have to pay property taxes as well.

[Breezy]

I did something with everything when we did our Federal Taxes but I never received anything from the city of Corpus. Wonder why?
Is it usually some outrageous bill?

[Debbi]

You won't receive anything, until you get caught. You have to file this annually. Do a search on TPF and you'll find tons of threads about this.

[Breezy]

that is really wierd Debbie, cause I had everything set up in TX legally.

Another question if something is given to me, do I claim it and if so how since I didn't actually purchase it? And this is like props nothing like cameras etc..

[Debbi]

I believe you will have to claim the resale cost of the items, even if you didn't purchase them because you now own them. In Texas, it is a county requirement. Not sure about VA. Contact the county office.

[Breezy]

I will thanks, it will just be like the 5th time today lol.

[pbyd]

Breezy,
To be totally legal in the state of Texas you must collect and send in sales tax on all income from photography (with only a few exceptions), pay Federal income tax and you must pay Business Personal Property Tax (this goes to your county and school district). I do understand that many photographers never really get into the business of photography so they never check or understand what the laws are. If everyone was on a level playing field, we all would pay less tax and make more income, because of people not paying all of the taxes due, those of use that are legal end up paying more. This is just the way it is. In Texas if you do get audited you will find that it is up to you to know the law and believe me you will pay your back taxes and penalties. As for Business Personal Property Taxes, it is on all equipment, furnishings, office equipment, computers and even props. Even if you work out of your home these taxes are all required in the State of Texas. What a lot of people don’t know is most cities require an occupancy permit also to do business, even in your home, I know because I was busted, you have 10 days to get your permit and then a fine of $500.00 per day is collected until you pass the requirements of the city code. I know we had a “tax police” on the forum once and a lot of people disliked him, but if you did learn anything it will keep you out of much legal trouble later. I have been a working photographer and studio owner for over 39 years and these laws have always been the same.
Good shooting,
Wayne

[Breezy]

Thanks Wayne,
I did everything except the personal property tax. Guess I will call TX in a couple of weeks once I have this one done.
One would think they would tell you this when you ask if there is anything else you have to do business related.
Thanks for the info.

[Steelsun]

Don't know if this is legit advice (consult and accountant), but this Business Property Tax is for stuff that the business owns or leases.

If it is personal property, but you let the business "borrow" it (with no fees) for short periods, then it is not the property of the business. Now this also would mean you can't declare something (like a camera purchase) as a business expense and then use it for personal things.

[pbyd]

Brian,
If a camera is not used in a business you do not pay business personal property taxes on it. I just received my Harris County Appraisal District forms today that have to be filled out and returned by April 15, 2009. The following is stated on the form:

Dear Property Owner:

“Enclosed you will find forms for rendering your business personal property for tax year 2009. In the State of Texas a rendition is mandatory. If you fail to render your business personal property, you will be liable for a penalty of 10% of the amount of property taxes ultimately imposed on the property. The penalty also applies if your rendition is filed late.

If your business personal property is valued at $20,000 or more, you must provide either a good faith estimate of market value or the historical cost and date of acquisition of each item or category of items. If you provide a good faith estimate of the market value rather than the cost and acquisition date, the appraisal district may require you to provide a detailed explanation of the basis for your value estimate. Failure to timely provide the explanation will subject you to a penalty of 10% of the amount of taxes ultimately imposed.

Harsher penalties, equal to 50% of the amount of taxes ultimately imposed, may be levied against you for fraud or intentional misrepresentation. Criminal penalties may also be imposed.”

This is just a nice way to let us know we as tax payers by law have to pay taxes. As I said before, a lot of people do not follow the laws in their city, county or state. I do not really care if some one breaks the tax laws, but it does cost us all. I am not trying to be an accountant or anything like that; I am only sharing what I know from being in the photography business many more years than most. I know that part-time photographers that charge their clients money owe taxes just like the full time person does. It just cost you less in money time and embarrassment if you do business legally.
We are all in this together, good shooting.

Wayne

[cooltouch]

Nevermind -- I answered my own question.